Frequently Asked Questions
What is Demand Response?
Demand Response is a tactic used to financially incent and enable customers to contribute in energy load reduction during times of peak demand.
Why is demand response necessary?
When demand is high and supply is short, power interruptions can sometimes be the result. Building enough power plants to satisfy every possible supply and demand scenario is one possibility, but the cost and environmental impact of that would be tremendous. Demand response programs are designed to be both economically and environmentally responsible ways to respond to occasional and temporary peak demand periods. The programs offer incentives to residents and businesses that volunteer and participate by temporarily reducing their electricity use when demand could outpace supply.
Why should I participate?
Demand response provides a way for you to actively enhance the reliability of Ontario's energy supply while receiving a financial reward for your participation. With demand response, you can take small or big steps to reduce your electricity demand. Not only are you saving energy and making money, you're also helping to reduce Ontario's carbon footprint! Talk about a win-win-win situation!
When are peak demand days?
Demand response days are declared when demand for electricity threatens to outpace supply, which typically occurs during hot summer days. Additionally, this can happen if generation facilities are closed for maintenance, transmission lines are damaged, or during periods when the price to purchase added electricity escalates.
Why not build more power plants?
It is simple economics - building and maintaining enough power plants to satisfy occasional and temporary peaks in demand would impact rates and the environment. Major capital investment projects with low utilization are not in the best interest of Ontario's businesses or our environment. Instead, by temporarily reducing demand when resources reach capacity, we have a more fiscally and environmentally responsible solution to help protect the environment and stabilize energy systems.